Japan's Showa Denko cuts prediction for six-month operating profit

29 July 2013 11:53[Source: ICIS news]

TOKYO (ICIS)--Japanese chemical producer Showa Denko has lowered its six-month operating profit forecast by 49% to yen (Y) 6.7bn partly because the company expects its petrochemical segment’s profit to decrease from the previous year, it said on Monday.

This was due to the easing of the tight demand-supply balance for the olefins business in the Asian market, the producer said.

In February Showa Denko predicted its operating profit would be Y13bn for the six months to 30 June 2013.

As a result of lower-than-expected operating profit, net profit is projected to decrease by 58% from the previous forecast, to Y2.1bn, the company said.

Net sales is now expected to be Y21.4bn, down by 5.6% from the previous prediction, because of elevated naphtha prices, Showa Denko said.